NewKerala.com

Aviation and Travel Stocks Plunge 6% After PM Modi's Foreign Travel Appeal

Aviation and travel stocks fell sharply after PM Modi urged citizens to avoid non-essential foreign travel. IndiGo shares dropped 6.88%, while SpiceJet and GMR Airports fell over 4%. PM Modi emphasized saving foreign exchange and reducing petrol and diesel consumption. The broader market also fell 1% due to US-Iran tensions.

Key Points: Travel Stocks Fall 6% After PM Modi Appeal

  • IndiGo shares dropped 6.88%
  • SpiceJet and GMR Airports fell over 4%
  • Thomas Cook shares declined 5.02%
  • Jewellery stocks tumbled up to 12%
2 min read

IndiGo, Thomas Cook, other stocks fall up to 6 pc after PM Modi appeal

IndiGo, Thomas Cook, and other travel stocks fell up to 6% after PM Modi urged citizens to avoid non-essential foreign travel amid West Asia crisis.

"In the present circumstances, saving foreign exchange has become equally important for the nation - Narendra Modi"

New Delhi, May 11

Aviation and travel-related stocks came under sharp selling pressure on Monday after Prime Minister Narendra Modi urged citizens to avoid non-essential foreign travel and adopt fuel-saving measures amid rising global uncertainty linked to the ongoing crisis in West Asia.

Shares of InterGlobe Aviation -- the parent company of IndiGo -- led the decline among aviation counters, falling 6.88 per cent during early trade to hit an intraday low of Rs 4,276.80 apiece on the BSE.

Meanwhile, SpiceJet shares dropped more than 4 per cent to Rs 13.41, while GMR Airports slipped nearly 4 per cent to around Rs 97 per share.

Additionally, travel agency-related counters also witnessed selling pressure amid concerns that any slowdown in discretionary overseas travel could weigh on sector demand.

Thomas Cook India shares declined 5.02 per cent to hit an intraday low of Rs 91.94 during morning trade, while TBO Tek shares fell 5.7 per cent to Rs 1,169.30.

Le Travenues Technology Ltd (Ixigo) shares traded 2.8 per cent lower at Rs 163.75.

In addition, jewellery-related stocks tumbled up to 12 per cent, including Titan, Kalyan Jewellers, Sky Gold and Diamonds, Senco Gold, and BlueStone Jewellery and Lifestyle,

The selloff followed PM Modi's appeal to citizens on Sunday to help conserve foreign exchange reserves by avoiding unnecessary overseas vacations, destination weddings and non-essential foreign travel.

Addressing a BJP public meeting at the Parade Grounds in Secunderabad, he stressed the need for economic discipline and prudent consumption amid disruptions in global supply chains and rising energy prices.

He also urged people to reduce petrol and diesel consumption by increasingly using metros and public transport systems wherever available, while encouraging car-pooling when private vehicles were necessary.

"In the present circumstances, saving foreign exchange has become equally important for the nation," PM Modi said during his address.

PM Modi further advocated reviving COVID-19-era practices such as work-from-home, virtual meetings and digital conferences in the national interest.

However, equity benchmarks Sensex and Nifty also traded 1 per cent lower each after the US and Iran failed to reach an agreement on a peace proposal related to the West Asia conflict.

Notably, US President Donald Trump, on a social media platform, said, "I have just read the response from Iran's so-called 'Representatives.' I don't like it - TOTALLY UNACCEPTABLE!"

- IANS

Share this article:

Reader Comments

S
Sneha F
I understand the need for foreign exchange conservation, but these stocks falling sharply shows how interconnected the economy is. One statement from the PM and entire sectors tumble. Maybe the government should look at providing some support to the aviation industry if this is long-term.
J
James A
As someone who works in the travel sector, this is concerning. I get the PM's point about being responsible, but these companies employ so many people. IndiGo and Thomas Cook going down 5-6% in a day is not trivial. Hope we can find a balanced approach that protects both the economy and jobs.
V
Vikram M
Arre yaar, just when I was planning a trip abroad this December! But I think the PM's advice makes sense with the global situation. Better to explore our own beautiful country - Himachal, Kerala, Northeast - they're amazing too. Domestic travel ko promote karo! 🌏✈️
M
Michael C
Market reaction seems a bit overblown. The PM's appeal is advisory, not a ban. People can still travel if they need to. Maybe the selloff is more about the broader geopolitical tensions than just Modi's comments. The US-Iran situation is what's really spooking markets globally.
P
Priya S
I appreciate the PM's call for saving forex and reducing unnecessary consumption, but I wish this came with more concrete policy measures for the affected sectors. Just saying 'avoid foreign travel' without a plan for tourism workers or airline staff seems incomplete. Still, jai hind. 🙏

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Leave a Comment

Minimum 50 characters 0/50